1. Demand

SoFi’s $443.4 million in adjusted net revenue beat analyst estimates by 4.2%.

SoFi’s 2022 guide anticipated a student loan volume ramp in December as the moratorium was supposed to end January 1st 2023. The extension prevented any ramp from taking place, which hit both revenue and -- as it’s a high margin product for SoFi -- profitability. It beat regardless of this.
Revenue growth of 58% YoY accelerated from 51% YoY growth last Q.
The 56% 2 year revenue CAGR compares to 39.1% last quarter.

2. Profitability

SoFi’s incremental GAAP Net Income margin for Q4 2022 was 42%. Of the $171 in new GAAP revenue, $71 million flowed down to GAAP net income.
Tech platform contribution margin was 24% ex-technisys. It expects margins here to expand in 2023 for the first time in several years.
Improving financial services contribution margin is DESPITE raising marketing spend by $13 million QoQ to attract deposits. Conversely, this margin line is still being hard hit by SoFi building current expected credit losses (CECL) in connection with its newer credit card business.
SoFi’s adjusted EBITDA margin for 2022 was 9% vs. 2.7% in 2021.

$2.2 billion in cash & equivalents.
$12 billion in personal and student loans.
$5.4 billion in total debt including $1.2 billion in convertible notes.
- Using 36% of its warehouse facility capacity vs. 35% QoQ.
Stock comp fell to 16% of sales vs. 27.5% YoY.
- This is still being heavily impacted by equity awards in connection with going public & includes restricted stock units with strikes that aren’t remotely close to vesting but still count as stock comp. We’ve been consistently told that this will fall below 10% of revenue in 2024.
- Adjusted EBITDA dollars reached stock comp dollars for the first time in SoFi’s history with that expected to continue like it needs to.
- 2 straight quarters of tangible book value growth.
Total deposits grew 46% QoQ to reach $7.1 billion vs. just $1 billion at the start of 2022. The pace has accelerated greatly from $100 million per week in new deposits earlier in 2022.
- 88% of these deposits are of the direct deposit variety.

“We have ample cash, excess liquidity and strong capital and leverage ratios.” — CFO Chris Lapointe